MILAN (Reuters) - Activist fund Elliott Advisors has sent a letter to other Telecom Italia (MI:TLIT) shareholders, calling for a "truly independent" board to improve governance, performance and shake-up the way top Vivendi (PA:VIV) has run the Italian phone group.
Elliot said "poor stewardship under the Vivendi-controlled board has resulted in deeply troubling corporate governance issues, a valuation discount and strategic failures".
The activist investor has already proposed to remove some of TIM's board members nominated by Vivendi, which holds a 24 percent of the company, and replace them with some well-known figures in Italian business.
The fund said it would urge a new board to convert TIM's saving shares into ordinary ones, push for a listing or partial sale of its soon-to-be-created network company and reintroduce dividend payments.
Elliot said it now holds more than 3 percent of TIM's ordinary shares, while together with financial instruments its disclosable interest exceeds 5 percent.